Comfort Inn & Suites
Now offered at less than 3X revenue, Attractive Cash Flow, Minimal PIP Expected.
Marketing description
DON'T LET THE SMALL MARKET STOP YOUR CONSIDERATON...........LOOK AT THE INCREASING REVENUE!!
NOW OFFERED INDIVIDUALLY OR AS A PART OF A TWO PROPERTY PORTFOLIO, WHICH INCLUDES THE ADJACENT HOLIDAY INN EXPRESS & SUITES. TO VIEW THE SUMMARY OF THE EXPRESS, CLICK HERE:
This 73 key Comfort Inn & Suites, located in Goodland KS, benefits from its ideal Interstate 70 location, just 3 hours east of metro Denver. As one would expect, not only does the hotel benefit from a premium brand, but also extensive walk-in traffic from I-70. The hotel was converted to a Comfort Inn & Suites in 2022, and the revenue has ramped up nicely, and has competed quite well with the opening of the new Holiday Inn Express (2022). The nice ramp-up has resulted in attractive topline revenue and appealing net operating income. This has been a one owner property since it was built, and it is the first time to market.
The hotel benefits from a partial real estate tax abatement, which expires in Dec 2030. At that time, the leasehold interest converts to fee simple title. The City holds the figurehead title until the abatement expires, but has no operational control, period.
Goodland KS is a rural community in western KS, with stable demand from transient I-70 travel, long haul trucking, and a strong energy and agribusiness base. Only 3 hours from the metro Denver area, it is considered a great stopover point for those not wishing to stay in a metro area, including those wishing to seek the easy and convenient access of a rural market. In addition, additional stopover opportunities are created by a bank of onsite EV charging stations.
The Inn & Suites version of the Comfort Inn brand is considered a step above a standard Comfort Inn, and one will see why with a site visit. Given the conversion date of 2022, one would expect a minimal PIP for the ownership transfer, which means that a new owner can step into cashflow without significant Capex cost, and the inconvenience and downtime of a major PIP. A site visit will show a property that is well managed and well maintained.
Investment highlights
THE COMFORT INN IS OFFERED AT LESS THAN 3X REVENUE AT THE ASKING. MINIMAL PIP EXPECTED.
Step into immediate cash flow without significant Capex expense. Converted the 2022, this superior Choice brand has ramped up nicely and demonstrates increasing and attractive topline revenue, resulting in appealing cash flow.
Partial tax abatement in place through 2030. In the State of Kansas, tax abatements are not granted to developers but to cities, and therefore, the City of Goodland holds fee title. At the end of the abatement, (2030), the developer's leasehold interest converts to fee simple title.
- 73 keys, built 2007, T-12 revenue now over $2M
- 10+ cap rate at the asking price
- Monthly revenue still increasing. A new HIEX is already open in the market (2022)
- Converted in 2022, including new sleeping areas. Minimal PIP expected
- New roof 2024
- Priced at less than $81K per key for a recently converted top brand
- Attractive in-place cash flow of $620K (YE 2025)
- Partial tax abatement through 2030. The leasehold interest converts to fee simple title at the expiration of the tax abatement
- Ideal profit opportunity for an onsite owner/operator or onsite partner operator
- Demand created by heavily traveled I-70, and a strong agribusiness and energy economy
- The Inn and Suites version of Comfort Inn is typically more attractive to investors
- Features a variety of suites, with separate sitting areas
- Onsite EV charging stations (Tesla) also create stopover opportunities for transient travelers
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